When the Interest Rate Is Above the Equilibrium Interest Rate

question 597

Multiple Choice

When the interest rate is above the equilibrium interest rate there is an

• A) excess demand for money and people will sell bonds.
• B) excess quantity of money and people will buy bonds.
• C) excess demand for money and people will buy bonds.
• D) excess quantity of money and people will sell bonds.

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Definitions:

Cost Of Goods Sold

Expenses directly related to the manufacturing of products a company sells, such as raw materials and labor costs.

Gross Profit Method

An inventory estimation method used to calculate the cost of goods sold and ending inventory, based on gross profit margins.

Market Value

Today's selling or buying price for services or assets in a trading environment.

Lower Of Cost

An accounting principle ensuring that inventory is reported at the lower of its original cost or its market value if the market value is less.